Is Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) Potentially Undervalued?

Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI), operating in the financial services industry based in United States, saw significant share price movement during recent months on the NASDAQGS, rising to highs of $19.65 and falling to the lows of $16.84. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Atlantic Capital Bancshares’s current trading price of $17.71 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Atlantic Capital Bancshares’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Atlantic Capital Bancshares

What is Atlantic Capital Bancshares worth?

Great news for investors – Atlantic Capital Bancshares is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $24.34, but it is currently trading at US$17.71 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Atlantic Capital Bancshares’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

What kind of growth will Atlantic Capital Bancshares generate?

NasdaqGS:ACBI Past and Future Earnings, April 23rd 2019
NasdaqGS:ACBI Past and Future Earnings, April 23rd 2019
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 15% over the next couple of years, the outlook is positive for Atlantic Capital Bancshares. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since ACBI is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ACBI for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ACBI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Atlantic Capital Bancshares. You can find everything you need to know about Atlantic Capital Bancshares in the latest infographic research report. If you are no longer interested in Atlantic Capital Bancshares, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.